ARBITRATION RULES FOR THE ADDIS ABABA CHAMBER OF COMMERCE
Arbitration Rules For AACC ARBITRATION INSTITUTE
I. PRELIMINARY PROVISIONS
Article 1. Submission for Arbitration
1. Where the parties to a contract have agreed in writing that disputes in relation to that contract shall be settled by Arbitration in accordance with the Rules of the Addis Ababa Chamber of Commerce Arbitration Institute (hereinafter referred to as the " Institute"), then such disputes shall be settled in accordance with these rules and amendments thereof.
2. The Rules applicable to the arbitration shall be those in force at the time of the commencement of the arbitration unless the parties have agreed otherwise.
Article 2. Provision of facilities
The Institute shall, at the request of either
party, make available or arrange for such facilities and assistance for the
conduct of arbitration proceedings as may be required, including suitable
accommodation for sittings of the arbitral tribunal, secretarial assistance and
other facilities within the capability of the Institute.
Where the parties have designated the institute as an appointing authority of arbitrators for an ad-hoc arbitration, the Institute shall fix the fees for such service.
II. INITIATION OF PROCEEDINGS
Article 3. Request for Arbitration
1. Parties who may wish to make use of the facilities provided by the Institute should make a written request to it that the parties have entered into a written arbitration agreement. In such written arbitration agreement, the parties shall indicate to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. This arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
2. The arbitration clause may be stated as "any disputes, controversies or claim arising out of or relating to this contract, or the breach, termination or invalidity or any subsequent amendment of this contract thereof, shall be settled by arbitration in accordance with the Arbitration rules of AACC Arbitration Institute as at present in force. In addition, parties may wish to consider: a) appointing authority, b) number of arbitrators, c) place of arbitration and d) language of arbitration.
Such an agreement may be incorporated in a
contract between the parties out of which the dispute has arisen or by a
separate agreement, which the parties enter into.
Article 4. Statement of claim
The claimant shall satisfy the following requirements when submitting his
applications for arbitration:
i. an application for arbitration in writing shall be submitted and the following shall be specified in the application for arbitration:
· the name and address of the claimant and those of the respondent, including the telephone, fax, email or other communication means, if any;
the arbitration agreement relied upon by the
the facts of the case and the main points of dispute;
the claimant's claim and the facts and reasons on which his claim is based.
· the name and address of the arbitrator designated by the claimant where more than one arbitrator is to be appointed, and
· name and address of an attorney, if any while attaching at the same time power of attorney.
· The application for arbitration shall be signed and/or stamped by the claimant and/or the attorney authorized by the claimant.
ii. when an application for arbitration
is submitted to the Institute, the relevant documentary evidence on which the
claimant's claim is based shall accompany the application for arbitration.
iii. the claimant shall pay in advance the fee specified under Article __ and Annex ___ of this rule.
2. When the Secretariat of the Institute, after examination of the application for arbitration, deems that the claimant has not completed the formalities required for arbitration, it shall demand the claimant to complete them, and when the secretariat deems that the claimant has completed the formalities, it shall immediately send to the respondent a notice of arbitration together with one copy each of the claimant's application for arbitration and its attachment as well as the arbitration rules, the list of arbitrators and the arbitration fee schedule of the arbitration commission, and shall simultaneously send to the claimant one copy each of the notice of arbitration, the arbitration rules, the list of arbitrators and arbitration fee schedule.
Article 5. Statement of defense and of counterclaim
1. The respondent shall, within 45 days from the date of receipt of the notice of arbitration, submit his written defense, appoint his arbitrator if more than one arbitrator is to be designated, and attach relevant documentary evidence to the secretariat.
2. The Institute may extend that the time limit if it deems that there are justified reasons.
When lodging a counterclaim, the respondent must
state in his written statement of counterclaim his specific claim, the facts
and reasons upon which his claim is based, and attach to his written statement
of counterclaim, the arbitration agreement and other relevant documentary
When lodging a counterclaim, the respondent shall pay the required fee in advance according to the arbitration fee schedule of the arbitration institute.
Article 6. Amendments to Claims and Counterclaims.
4. The claimant may request to amend his claim and the respondent may request to amend his counterclaim. Yet the arbitration tribunal may refuse such an amendment if it considers that it is too late to raise the request and the amendment may affect the arbitration proceedings.
5. The arbitration proceedings shall not be affected in case the respondent fails to file his defense in writing or the claimant fails to submit his written defense against the respondent's counterclaim.
III. COMPOSITION OF THE ARBITRAL TRIBUNAL
Article 7. Number of Arbitrators and manner of their Appointment
1. The parties are free to determine the number of arbitrators. Where the parties have not agreed on the number of arbitrators, the arbitral tribunal shall consist of three arbitrators, unless the Institute, taking into account, inter alia, the complexity of the case, the amount in dispute and other circumstances, decides that the dispute is to be settled by a sole arbitrator.
2. Where the arbitral tribunal shall consist of more than one arbitrator, each party shall appoint an arbitrator. Where a party fails to appoint an arbitrator within the period of time stipulated by the Institute, the Institute may make the appointment.
3. Where there are multiple parties on either side and the dispute is to be decided by more than one arbitrator, the multiple claimants, jointly, and the multiple respondents, jointly shall appoint an equal number of arbitrators. If either side fails to make such joint appointment, the Institute shall make the appointment for that side. If the circumstances so warrant the Institute may appoint the entire arbitral tribunal, unless otherwise agreed by the parties.
Where the dispute is to be decided by sole
arbitrator, the parties are to appoint jointly the said arbitrator. If they
fail to do so within 20 days from filing of the statement of defense, the
Institute shall make the appointment, unless otherwise agreed by the parties.
Article 8. Nationality of Arbitrators
If the parties are of different nationalities, the Institute shall appoint a sole arbitrator or Chairman of a nationality other than of the parties, unless the parties have agreed differently or if otherwise deemed appropriate by the Institute.
Article 9. Impartiality and Independence of Arbitrators
arbitrator must be impartial and independent.
Before appointment or confirmation, a prospective arbitrator shall sign a statement of independence and disclose in writing to the Secretariat any facts or circumstances which might be of such a nature as to call into question the arbitrator's independence in the eyes of the parties. The Secretariat shall provide such information to the parties in writing and fix a time limit for any comments from them.
An arbitrator who becomes aware of any circumstances, which may disqualify him, must immediately, in writing, inform the parties and the other arbitrators thereof.
Article 10. Challenge of Arbitrator
5. Where a party wishes to challenge an arbitrator that party shall send a written statement to the institute stating the reasons for the challenge.
6. Notification of a challenge must be made within 15 days as from the date on which the arbitrator is appointed or the allegedly disqualifying circumstance became known to the party. Failure by a party to notify the Institute of a challenge within the stipulated period of time will be considered a waiver of the right to initiate such a challenge.
7. The Institute shall provide the parties and the arbitrators the opportunity to comment on the challenge.
8. The Institute shall make the final decision on the challenge. If the Institute finds an arbitrator disqualified, it shall challenge the arbitrator.
9. A party may challenge the arbitrator appointed by him only for reasons of which he becomes aware after the appointment has been made.
Article 11. Removal of Arbitrator
10. Where an arbitrator is prevented from de facto fulfilling his duties or fails to perform his functions in adequate manner, the Institute shall remove the arbitrator
11. Before removing an arbitrator, the Institute shall request the views of the parties and the arbitrators.
Article 12. Replacement of Arbitrators
1. Where an arbitrator appointed by a party dies, the party in question shall appoint another arbitrator. Where an arbitrator appointed by the Institute dies, the Institute shall appoint another arbitrator.
2. Where an arbitrator resigns or is removed, the Institute shall appoint another arbitrator. If the arbitrator had been appointed by a party, the Institute shall request the views of the appointing party. Where the Arbitral Tribunal consists of three or more arbitrators, the Institute may decide that the remaining arbitrators shall proceed with the case. Prior to making such a decision, the views of the parties and the arbitrators shall be requested.
3. An Arbitrator shall be replaced upon his death, upon the acceptance by the court of Arbitrator's resignation, upon acceptance by the Court of a challenge or upon the request of all the parties.
4. An arbitrator shall also be replaced on the Court's own initiative when it decides that he is prevented de jure or de facto from fulfilling his functions, or that he is not fulfilling his functions, or that he is not fulfilling functions in accordance with the Rules or within the prescribed time limits.
5. When, on the basis of information that has come to its attention, the Court considers applying Article 12(2), it shall decide on the matter after the arbitrator concerned, the parties and any other members of the Arbitral Tribunal have had an opportunity to comment in writing within a suitable period of time. Such comments shall be communicated to the parties and to the arbitrators.
6. When an arbitrator is to be replaced, the Court has discretion to decide whether or not to follow the original nominating process. Once reconstituted, and after having invited the parties to comment, the Arbitral Tribunal shall determine if and to what extent prior proceedings shall be repeated before the reconstituted Arbitral Tribunal.
Subsequent to the closing of the proceedings,
instead of replacing an arbitrator who has died or been removed by the Court
pursuant to paragraph 3 and 4 of this Article, the Court may decide, when it
considers it appropriate, that the remaining arbitrators shall continue the
arbitration. In making such determination, the Court shall take into account
the views of the remaining arbitrators and of the parties and such other
matters that it considers appropriate in the circumstances
IV. ARBITRAL PROCEEDINGS
Article 13. General Provisions
1. Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, provided that the parties are treated with equality and that at any stage of the proceedings each party is given a full opportunity of presenting his case.
2. If either party so requests at any stage of the proceedings, the arbitral tribunal shall hold hearings for the presentation of evidence by witnesses, including expert witness, or for oral argument. In the absence of such a request, the arbitral tribunal shall decide whether to hold such hearings or whether the proceedings shall be conducted on the basis of documents and other materials.
3. All documents or information supplied to the arbitral tribunal by one party shall at the same time be communicated by that party to the other party.
4. The Secretariat shall transmit the file to the Arbitral Tribunal as soon as it has been constituted, provided the advance on costs requested by the Secretariat at this stage has been paid.
Article 14. Place of Arbitration
1. Unless the parties have agreed upon the place where the arbitration is to be held, such place shall be determined by the arbitral tribunal, having regard to the circumstances of the arbitration.
2. The arbitral tribunal may determine the locale of the arbitration within the country agreed upon by the parties. It may hear witness and hold meetings for consultation among its members at any place it deems appropriate, having regard to the circumstances of the arbitration.
The arbitral tribunal may meet at any place it
deems appropriate for the inspection of goods, other property or documents. The
parties shall be given sufficient notice to enable them to be present at such
The award shall be made at the place of arbitration.
Article 15. Language of Arbitration
In the absence of an agreement by the parties, the Arbitral Tribunal shall determine the language or languages of the arbitration, due regard being given to all relevant circumstances, including the language of the contract.
Article 16. Establishing the Facts of the Case
1. The Arbitral Tribunal shall proceed within as short a time as possible to establish the facts of the case by all appropriate means.
2. After studying the written submissions of the parties and all documents relied upon, the Arbitral Tribunal shall hear the parties together in person if any of them so requests or, failing such a request, it may of its own motion decide to hear them.
3. The Arbitral Tribunal may decide to hear witnesses, experts appointed by the parties or any other person, in the presence of the parties, or in their absence provided they have been duly summoned.
4. The Arbitral Tribunal, after having consulted the parties, may appoint one or more experts, define their terms of reference and receive their reports. At the request of a party, the parties shall be given the opportunity by the Tribunal
5. At any time during the proceedings, the Arbitral Tribunal may summon any party to provide additional evidence.
6. The Arbitral Tribunal may decide the case solely on the documents submitted by the parties unless any of the parties requests a hearing.
7. The Arbitral Tribunal may take measures for protecting trade secrets and confidential information.
Article 17. Hearings
Article 18. Closing of the Proceedings
V. THE AWARD
Article 19. Decisions
1. When there are three arbitrators, any order or other decision of the arbitral tribunal shall be made by a majority of the arbitrators.
2. In the case of questions of procedures, when there is no majority or when the arbitral tribunal so authorizes, the presiding arbitrator may decide on his own move, subject to revision, if any, by the arbitral tribunal.
Article 20. Form and Effect of the Award
3. In addition to making a final award, the arbitral tribunal shall be entitled to make interim, interlocutory, or partial awards.
4. The award shall be made in writing and shall be final and binding to the parties. The parties waive their right to appeal against the award.
5. The arbitral tribunal shall state the reasons upon which the award is based unless the parties have agreed that no reasons are to be given.
6. An award shall be signed by the arbitrators and it shall contain the date on which and the place where the award was made. Where there are three arbitrators and one of them fails to sign, the award shall state the reason for the absence of the signature.
7. The award may be made public only with the consent of both parties.
Copies of the award signed by the arbitrators
shall be communicated to the parties by the arbitral tribunal.
If the arbitration law of the country where the award is made requires that the award be filed or registered by the arbitral tribunal, the tribunal shall comply with this requirement with in the period of time required by law.
Article 21. Applicable Law, and Amiable Compositeur
1. In international arbitration, the arbitral tribunal shall apply the law designated by the parties as applicable to the substance of the dispute. Failing such designation by the parties, the arbitral tribunal shall apply the rules of law which it determines to be appropriate.
2. The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorized the arbitral tribunal to do so.
3. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.
Article 22. Settlement or other grounds for termination
1. If, before the award is made, the parties agree on a settlement of the dispute, the arbitral tribunal shall either issue an order for the termination of the arbitral proceedings or, if requested by both parties and accepted by the tribunal, record the settlement in the form of an arbitral award on agreed terms. The arbitral tribunal is not obliged to give reasons for such an award.
2. If, before the award is made, the continuation of the arbitral proceedings becomes unnecessary or impossible for any reason not mentioned in paragraph 1, the arbitral tribunal shall inform the parties of its intention to issue an order for the termination of the proceedings. The arbitral tribunal shall have the power to issue such an order unless a party raises justifiable grounds for objection.
3. Copies of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the arbitrators, shall be communicated by the arbitral tribunal to the parties. Where an arbitral award on agreed terms is made, the provisions of this rule stated under Article 20, paragraphs 2 and 4 to 7, shall apply.
Article 23. Interpretation of the Award
4. Within thirty days after the receipt of the award, either party, with notice to the other party, may request that the arbitral tribunal give an interpretation of the award.
5. The interpretation shall be given in writing within forty-five days after the receipt of the request. The interpretation shall form part of the award and the provisions of article 20, paragraphs 2 to 7, shall apply.
Article 24. Correction of the Award
1. Within thirty days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors, or any errors of similar nature. The arbitral tribunal may within thirty days after the communication of the award make such corrections on its own initiative.
2. Such corrections shall be in writing, and the provisions of Article 20, paragraphs 2 to 7 shall apply.
Article 25. Additional Award
3. Within thirty days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.
4. If the arbitral tribunal considers the request for an additional award to be justified and considers that the omission can be rectified without any further hearings or evidence, it shall complete its award within sixty days after the receipt of the request.
5. When any additional award is made, the provisions of article 20, paragraphs 2 to 7, shall apply.
VI. COSTS OF ARBITRATION
Article 26. Costs of Arbitration
1. After receipt of the Request, the Secretary General may request the Claimant to pay a provisional advance in an amount intended to cover the costs of arbitration until the Terms of Reference have been drawn up.
2. As soon as practicable, the Institute shall fix the advance on costs in am amount likely to cover the fees and expenses of the arbitrators and the Institute's administrative costs for the claims and counterclaims which have been referred to it by the parties. This amount may be subject to readjustment at any time during the arbitration. Where, apart from the claims, counterclaims are submitted, the Institute may fix separate advances on costs for the claims and the counterclaims.
3. The advance on costs fixed by the Institute shall be payable in equal shares by the claimant and the Respondent. Any provisional advance paid on the basis of Article 26(1) will be considered as a partial payment thereof. However, any party shall be free to pay the whole of the advance on costs in respect of the principal claim or the counterclaim should the other party fail to pay its share. When the Institute has set separate advances on costs in accordance with Article 26(2), each of the parties shall pay the advance on costs corresponding to its claims.
4. When a request for an advance on costs has not been complied with, and after consultation with the Arbitral Tribunal, the Secretary General may direct the Arbitral Tribunal to suspend its work and set a time limit, which must be not less than 15 days, on the expiry of which the relevant claims, or counterclaims, shall be considered as withdrawn. Should the party in question wish to object to this measure it must take a request within the aforementioned period for the matter to be decided by the Institute. Such party shall not be prevented on the ground of such withdrawal from reintroducing the same claims or counterclaims at a later date in another proceeding.
5. If one of the parties claims a right to a set-off with regard to either claims or counterclaims, such set-off shall be taken into account in determining the advance to cover the costs of arbitration in the same way as a separate claim insofar as it may require the Arbitral Tribunal to consider additional matters.
Article 27. Decisions as to the Costs of the Arbitration
The costs of the arbitration shall include the
fees and expenses of the arbitrators and the Institute's administrative
expenses fixed by the Institute, in accordance with the scale in force at the
time of the commencement of the arbitral proceedings, as well as the fees and
expenses of any experts appointed by the Arbitral Tribunal and the reasonable
legal and other costs incurred by the parties for the arbitration.
The Institute may fix the fees of the arbitrators at a figure higher or lower than that which would result from the application of the relevant scale should this be deemed necessary due to the exceptional circumstances of the case. Decisions on costs other than those fixed by the Institute may be taken by the Arbitral Tribunal at any time during the proceedings.
2. The final Award shall fix the costs of the arbitration and decide which of the parties shall bear them or in what proportion they shall bear them or in what proportion they shall be borne by the parties.
Article 28. Fees of Arbitrators
1. The Arbitration Institute shall fix its fees in accordance with the scale hereinafter set out as Annex 3. Where the sum is not set out the fees shall be fixed by taking in to consideration such factors as the complexity of the case, the diligence of the Arbitrators, the nature of the dispute, length of hearings, and eminence and standing of the Arbitrators themselves.
Article 29. Advance to cover costs of the arbitration
1. The Institute shall prepare an estimate of the costs of Arbitration and may request each party to deposit an equal amount as an advance for those costs.
2. During the course of the arbitral proceedings the Institute may request supplementary deposits from the parties as it is found important and appropriate.
3. If the required deposits are not paid in full within thirty days after the receipt of the request, the Institute shall so inform the parties in order that one or another of them may make the required payment.
If such payment is not made, the arbitral
tribunal, after consultation with the Institute, may order the suspension or
termination of the arbitral proceedings.
The Institute may apply the deposits towards disbursements for the costs of the Arbitration.
5. After the award has been made, the Institute shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties